Pound showed the worst performance among major currencies because of fears of a “hard” the break in relations in London and Brussels after the formal withdrawal from the EU.
the British currency on Monday, February 3, fell 1.1% against the dollar to a level 1,3058 dollars per pound. The main reason for the negative reaction of the players was the statement from the leadership of the EU and the UK, voiced on both sides.
London and Brussels continue to believe that the agreements in trade, Finance and several other fields. For the conclusion of new agreements have until the end of 2020, but according to estimates of various experts, including the chief negotiator of the EU Michel Barnier, the parties may not be able to sign new agreements in the course of this year.
Monday was published the basic guidelines of the European Commission in the forthcoming negotiations with the UK, announcing which Michel Barnier at the press conference stressed the need to respect “the primacy of the interests of the EU, all EU countries and all EU citizens”.
In his speech, Barnier quite clearly hinted at the fact that access of great Britain towards the single financial market of the EU will depend on compliance with the rules and regulations of the European Union. In particular, he noted that they will need some assurance that great Britain will not attempt to access the EU market not respecting the rules of the European Union.
Prime Minister Boris Johnson in turn also reported the expectations of the British authorities to negotiate with the EU. According to him, the UK “there is no need to conclude a free trade agreement, accepting the rules of the EU.” The British government announced that Britain will adhere to its standards, it would not require EU law enforcement.
thus, in Brussels and London on the first day of formal “independence” of the UK began to put forward their own conditions.I conclude a new trade agreement, the foreign exchange market these statements were interpreted as a hint of tough negotiations in the future, which can be “hard” break financial and economic relations between the UK and the EU.